Demand for new and used vehicles declined for a fourth consecutive month in June, data from iTrackLeads has found.

Overall enquiries declined by 16%, and sales fell by 12.5% against the same month last year, according to the data.

Test drives declined by 14%, and vehicle handovers fell by 35%.

Adrian Favill, director of iTrackLeads, said: “In a challenging market, it is essential that every lead is nurtured. It’s critical to respond to enquiries quickly because our data shows that up to 78% of sales go to the retailer that responds quickest.

“It’s also important for sales teams to review the data frequently to ensure that trends can be exploited, and issues addressed promptly. Additionally, visibility of the data will help to create an efficient and high-performance team.”

The data from iTrackLeads mirrors the latest SMMT new car registrations data, which showed the UK's new car registrations fell to their lowest June level since 1996 as a result of component supply problems, which caused a 24.3% decrease.

The company is urging dealers to respond to leads as quickly as possible, after its research found that every 10-minute delay creates a 30% drop in conversion.

According to eBays Motors the impact of the UK’s growing cost-of-living crisis is also now being felt in the used car sector, with sales slowing and the average price of a car advertised for sale via its platforms declining 4.7% in Q2.